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Senate Bill S168

2023-2024 Legislative Session

Relates to personal liability provisions in certain commercial leases

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2023-S168 (ACTIVE) - Details

Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-j, RP L
Versions Introduced in 2021-2022 Legislative Session:
S5144

2023-S168 (ACTIVE) - Summary

Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

2023-S168 (ACTIVE) - Sponsor Memo

2023-S168 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    168
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to personal liability
   provisions in certain commercial leases

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 235-j to read as follows:
   §  235-J.  PERSONAL  LIABILITY  PROVISIONS  IN  COMMERCIAL LEASES.   A
 PROVISION IN A COMMERCIAL LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL
 PROPERTY LOCATED WITHIN NEW YORK STATE THAT PROVIDES  FOR  ONE  OR  MORE
 NATURAL  PERSONS  WHO ARE NOT THE TENANT UNDER SUCH AGREEMENT TO BECOME,
 UPON THE OCCURRENCE OF A DEFAULT OR OTHER  EVENT,  WHOLLY  OR  PARTIALLY
 PERSONALLY  LIABLE  FOR PAYMENT OF RENT, UTILITY EXPENSES, OR TAXES OWED
 BY THE TENANT UNDER SUCH  AGREEMENT,  OR  ANY  OTHER  FEES,  CHARGES  OR
 PAYMENTS OWED BY THE TENANT UNDER SUCH AGREEMENT, SHALL NOT BE ENFORCEA-
 BLE AGAINST SUCH NATURAL PERSONS AT ANY POINT IF:
   (A) THE TENANT WAS:
   (I) REQUIRED TO CEASE SERVING PATRONS FOOD OR BEVERAGE FOR ON-PREMISES
 CONSUMPTION  OR  TO  CEASE  OPERATION UNDER EXECUTIVE ORDER NUMBER 202.3
 ISSUED BY THE GOVERNOR ON MARCH SIXTEENTH, TWO THOUSAND TWENTY;
   (II) A NON-ESSENTIAL BUSINESS SUBJECT TO IN-PERSON  LIMITATIONS  UNDER
 GUIDANCE ISSUED BY THE NEW YORK STATE DEPARTMENT OF ECONOMIC DEVELOPMENT
 PURSUANT TO EXECUTIVE ORDER NUMBER 202.6 ISSUED BY THE GOVERNOR ON MARCH
 EIGHTEENTH, TWO THOUSAND TWENTY; OR
   (III) REQUIRED TO CLOSE TO MEMBERS OF THE PUBLIC UNDER EXECUTIVE ORDER
 NUMBER  202.7  ISSUED  BY THE GOVERNOR ON MARCH NINETEENTH, TWO THOUSAND
 TWENTY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01876-01-3

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